Morgan Stanley reiterates Apple ‘buy’ – says market is underestimating iPhone demand

“Morgan Stanley analyst Kathryn Huberty reiterated her buy rating on Apple Inc. shares (AAPL) saying she believed the market is underestimating the likely success of the iPhone,” Tomi Kilgore reports for MarketWatch.

“She raised her 2007 iPhone sales forecast by 33% to 8 million units from 6 million, following a survey of 2,500 U.S. consumers. Huberty also believes Apple’s ability to leverage strong iPhone demand is being underestimated,” Kilgore reports.

Full article here.

MacDailyNews Note: Morgan Stanley has a $110 price target on Apple shares. Morgan Stanley’s survey of 2,500 US consumers found that more people are interested in buying an iPhone than the combined number of people who already own or are planning to buy a similar high-end device in the near term (23% vs. 19%).

[Thanks to MacDailyNews Reader “J Alex” for the heads up.]

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23 Comments

  1. @ off topic –

    Apple has stated that operability with Vista will be completed with the next iTunes release – not “fixed” with a patch. I’m sure it takes a little time to match up iTunes to the slop-bucket of code that is Vista – and make it work on, at least, a majority of the editions, versions, and slapped-together hacks out there.

    Also, don’t take this wrong, but if you really care about friends and family, you won’t let them drive drunk or use Windows.

  2. “Mac sales surge over 100 percent in January, says Pacific Crest Securities”

    So much for the naysayers re: the new advertising campaign! (I hear that Justin Long now has his own team of paparazzi now!)

    AAPL coming back up from the Tuesday dip. Now at $87+, up $2.50+ from yesterday’s close.

  3. Sounds like good news to me. Who could ask for anything more than underestimation of your potential success? Better than them overblowing it, predicting that 10 million is too little and therefore they believe it to be 15-20m.

  4. It’s silly to talk about iPhone cannibalizing iPod sales no matter what. Cannibalization is a POSITIVE development when the contribution margin of the new product is greater than that of the old product, which is almost definitely the case with iPhone. Plus, the each iPhone will generate a recurring revenue stream, in addition to the iTunes Store revenue stream that follows each iPod.

    Silly, I tells ya.

  5. I think the pent up demand for this thing is huge.

    My wife so one and said i want it. She’s as big an incompetent technophobe as there is.

    I’ve seen other discussions of the thing on generic, no tech related internet messages boards from very non technical types Ii was surprised even knew it was coming, let alone seemed excited about it.

    This is all anecdotal of course but I can see why analysts may be underestimating demand where Apple, with almost no advertising to date, knows what’s out there.

  6. And let’s don’t forget the 200+ patents Steve said they already have in place for the iPhone! It’s going to be VERY difficult for competitors to copy the Apple device without treading on a few (all?) of them.

  7. I wouldn’t be surprised if Samsung had a comparable device (the F700 “iPhone killer” doesn’t count) on the market by the end of the year.

    Fortunately, like that piece of shit Meizu player, the first wave of copycats won’t have Multi-touch.

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